This is Turov on Timing for Wednesday, December 20, 2006.
The SPX advanced 3.07 points yesterday to close at 1425.55. TOT daily traders moved to the sidelines on yesterday’s opening and were there for the balance of the session.
Since initiation of the Turov on Timing service on September 30, 1993, our daily trader recommendations have gained 8832.10 cumulative SPX points, compared to a gain of 966.62 points in the index itself over the same period. That’s a ratio of 9.14 to one.
The super long term perspective for the stock market remains bearish (as it has been since January 2000), and it’s unlikely anything will change that for several years.
Both the long and short term models remain neutral.
On yesterday’s hotline, I said, “My best educated guess is that the market will open soft today, move lower yet, and then improve late in the day. Whether it recovers all of the anticipated early weakness is anybody’s guess.” Well, it moved much lower immediately after the cash market opening than I had anticipated, but it certainly did improve late in the day. The SPX and Dow did recover all of the early weakness, but NASDAQ did not.
Today, the overnight futures are indicating a strong opening, as I write this. My best educated guess is that the market will open somewhat higher, then move lower, and once again, improve late in the day The daily model is neutral because of high risk, and we will stand aside for the session.
NOTE: If the SPX closes today’s session in positive territory, then there is a high probability that the daily market will be bullish on Thursday.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours.
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